Interest rates in the United Kingdom: the Bank of England has just carried out its largest increase in 27 years
The central bank said in a press release on Thursday that inflationary pressures had “intensified significantly” in recent weeks.
“This largely reflects a near doubling of wholesale gas prices since May, due to the restriction of gas supplies from Russia to Europe and the risk of further restrictions,” he said. declared.
The Bank of England has also forecast inflation to top 13% in the autumn, when energy bills are expected to rise, and will “remain at very high levels for much of 2023”.
But the Resolution Foundation, a think tank, said on Wednesday it expects energy costs to drive consumer price inflation past 15% next year.
Global natural gas prices began to rise last year as global economies reopened from pandemic shutdowns, causing demand to surge. Soaring costs fueled consumer prices.
Average UK energy bills could top £500 ($613) in January alone, according to a new report from consultancy BFY Group.
Anti-poverty activists have been sounding the alarm for months.
According to a June report from the Joseph Rowntree Foundation, about two-thirds of all low-income families have gone without essentials like heating or showers this year.